Navy Total Force (Manpower, Personnel, Training and Education) FLTCM(SS/SW/AW/PJ) Michael J. McCalip Fleet Master Chief 3 April 2009 Unclassified

2  New missions Riverine Warfare, Humanitarian Assistance, GWOT Support  Increased emphasis on old missions Security cooperation, maritime interdiction  Increased sphere of engagement More places simultaneously Different operating environments (blue/green/brown water) Emerging peer competitors  More platforms and fewer Sailors Optimal manning – no “excess” capacity New skill combinations = new training approaches  Changing marketplace Changes in demographic mix Impact of multiple generations in the workforce A Changing Navy It’s a different Navy...not just a smaller Navy

3 Total Force Challenges Delivering FIT with the Total Force  Pulling out of the manpower glideslope while facing… New missions and a changing force structure mix An enduring augmentee requirement Rising personnel costs  Recognize demographic changes and… Reflect diversity Address generational value-shifts Answer demand for increased learning and development

FY08 E/S 332,228 FY09 NDAA 326,323 FY09 Active Navy Strength Weekly Tracking Legend FY09 PRESBUD PLAN FY09 Weekly Actuals FY09 NDAA FY09 OPLAN SepAugJulJunMayAprM ar JanDecNovOctSepFeb FY09 OPLAN 329,042 CNO, this week we have 399,408 military (332,060 AC, 11,545 FTS, and 55,803 SELRES) and 185,804 civilians (183,360 Appropriated Fund employees and 2,444 Foreign National Direct hires). There are 5,134 reservists activated for the GWOT. 6,280 Active Component are on IA assignments. Our recruiting posture for the month of February is 3,070 (shipped and DEP) against a goal of 3,023. We currently have 18,779 in our out-month DEP against a remaining goal of 23,211 (81%). Data as of 25 Feb 2009

5 FY08 E/S 68,136 FY09 NDAA 66,700 FY09 Reserve Navy Strength Weekly Tracking Legend FY09 PRESBUD PLAN FY09 Weekly Actuals FY09 NDAA FY09 OPLAN SepAugJulJunMayAprMarJanDecNovOctSepFeb FY09 OPLAN 66,000

6 Retention Reenlistment Rate vs Unemployment There is a moderate to strong positive correlation between unemployment rate and reenlistment rates

7 Attrition Statistics

8 FILLFIT The Keys to Transition SizingShapingStabilizing The right number of billets The right type of individuals available to fill billets A personnel system that proactively addresses changing demands FIT is about delivering the right person in the right position at the right time at the best cost Platform-centric A Sailor in every billet Capability-driven Right person, right position FIT Transformation

9 Navy Augmentation Impact End Strength (ES) Civil Affairs Provincial Reconstruction Training Teams Detainee Operations Customs Inspection IED and Combat Support MP/Master-at-Arms NMCB (“SeaBees”) Airlift Support Cargo Handling Maritime & Port Security Medical/USMC Support Base Operations Medical Support Intelligence JTF/COCOM Staff Support Temporary 4,400 Adaptive Core 2,700 Core 7,000 Capabilities 7,100 *Includes OIF, OEF and other global requirements, as well as estimated required training “tail.” Impact on sea billets Impact on shore billets Data as of September 2008 Growth in OEF additional

10 GSA Detailing  Shift to GSA deployments Sep 08  29% Officer, 22% Enlisted on GSA (24% total) Jun 09  53% Officer, 59% Enlisted on GSA (57% total)  CFFC as IA executive agent N1 – policy, reporting, and oversight USFF – execution and enforcement  Policy incentives Advancement points Exam flexibility The goal: stable and predictable GWOT assignments

11 Principles  Retain our best Sailors with the right skill mix Target incentives to critical skills ratings Keep a balanced force – seniority, experience, and skill sets matched to requirements Focus on performance – retain and safeguard careers of top performers  Continue to attract and recruit our Nation's brightest Continue our efforts as a "Top 50" Company – remain brilliant at the basics  Continue to use FIT as our primary metric  Stability and predictability to support Fleet readiness

12 Boomers Generation X Millennials Idealistic Champions of social causes; seek to change their world Individualistic Non-conformists; 63% aspire to be different than other people Self-Completing 61% feel they need to know themselves better Acquisitive Often believe the more they give away or let get away, the less special they are Media Consumption Passive Cynical Shaped by divorce, recession, commercial hype, & morally suspicious social leaders Independent/Pragmatic Take it upon themselves to plan, analyze and make solid decisions -always hedging Entrepreneurial 57% take what they can get in life Diverse Social choices reflect consumption pattern Media Consumption Selective Optimistic Products of their close relationships with parents and extended families Interdependent Record number choosing to join large institutions and government agencies in search of team work and protection against risk. Balanced #1 goal: balance personal & professional life. Sense of Urgency Want responsibility quickly, need short- term goals Media Consumption Multi-source 2% of Navy 55% of Navy 43% of Navy “It’s not just a job. It’s an adventure!”“Accelerate your life!”“Go with the Bold Ones!” Generational Value-Shifts

13 Task Force Life Work TOP 50 COMPANIES KNOW: WHAT WE’RE DOING:  10 Days Paternity Leave  Operational Flex. for Parenting  Career Intermission Program  Social Enterprise Fellowships  Flexible Work Schedules  Virtual Command Parenting is a Priority Flexibility is the Key Demand for Balance

14 MCPON Top 5 discussion topics  Standards and Conduct instruction  Brilliant on the basics  New CPO evaluation  Continuation board  Uniforms  CMC progression